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Media business
Forbes to dump China publisher?Posted by Jeremy Goldkorn, February 3, 2008 12:50 AM
![]() The glossy monthly magazine is officially published in Hong Kong, but it is aimed at Mainland readers and advertisers. A nod and wink arrangement, common in publishing in China, allows Mainland readers to buy or subscribe to the magazine through the China National Publication Import and Export Group (中国图书进出口(集团)总公司) even though the rag is actually printed inside the borders of the Mainland. Forbes China (福布斯) is operated by the Morningside Group under a licensing arrangement with Forbes Media. Morningside is an investment company with extensive interests in the Mainland. It is owned by the Hang Lung Group, controlled by Hong Kong brothers Ronnie C. Chan and Gerald L. Chan. (Hang Lung's major business is real estate.) Morningside has made profitable investments in Sohu.com and in outdoor advertising companies in China. They have also invested in Facebook clone Zhanzuo, and in a company called Health Media that puts digital screens bearing advertising in hospitals — Focus Media for the diseased and injured. Morningside has been struggling for the better part of a decade to make a dime from print magazines. They currently control the Chinese editions of Harvard Business Review, Information Week, and Forbes. But perhaps not for much longer. There is a rumor about that Forbes Media is not going to renew Morningside's license agreement, which expires in June 2008. IDG, perhaps the most successful foreign investor in print media in China, is apparently going to bag either the license for both print and online, or just online initially (i.e. Forbes would keep Morningside on board for print but split the online off). The rumor could just be bluster, but apparently Steve Forbes and IDG head honcho Pat McGovern are old buddies. |
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Comments on Forbes to dump China publisher?
I don't know anything about the Chinese language edition of Forbes, but I initially subscribed to their English languange Forbes Asia because they had a US$9.95 year-long subscription--a super deal for an English language magazine delivered to China. However, I only ended up getting 2 of the issues. After complaining they sent some more magazines. Stupid or not, I subscribed again, thinking the magazines were getting lost because of the post office around my office (This is China). So had them sent to my home instead. I am getting 70% of the issues this year. Better, but still lower than the other magazines I subscribe to. For a magazine that specifically goes after English language readers in China they should be able to allow for Chinese characters on the mailing label, or mail directly from inside China rather than Singapore.
I got 100% of my 'Metropolis' magazine issues, and they definitely don't target China. But Forbes-Asia, it's hit or miss on getting my bathroom reading material.
I'm not much of a Forbes reader.
i think Forbes is more interested in people...who is doing what and where. If one wants to get current feed on important trends to watch out for,"Economist" is the one. If you are interested in people mobility and how much which CEO earns,then go for it.
PS.my fri once showed me an article on Al Gore and his award winning story on global warming. Very negative!
At the time there were several players who were competing to get the Forbes license for a PRC edition, but R. Chan was (of course; but IDG has deep pockets too) the only one able to put the large sum requested by Forbes on the table (the rather unique criteria for Forbes choice according to a chagrined competitor). Hang Lung's guys are smart businessmen (even if not publishers at all; but able to smell the flow of advertising money as many other hungry rats) and they just copied the very efficient and lucrative Fortune's business model invented by CCI/Tom Gorman in HK for Fortune (Time Inc.) years ago: i.e. controlled circulation managed from HK (i.e. free subscriptions), and offshore publishing (-no publishing license, anywhere-, just like advertising brochures; with possibly ghost editorial offices, partly hidden somewhere on the PRC territory, thanks to Internet-; a nice concept, frequent in the cyberspace, far much rarer for paper products especially with 100-200,000 audited readers -see BPA audits freely available online-), audited circulation (rather rare in the PRC; thus higher rates on their ad rate cards), and the last, smarter but riskier stage, printing and shipping discreetly the enormous mass of paper from Shenzhen to discreet workshops across the PRC for cheap mailing services (with a vague "import" paper stamped for a fee, with eccentric quantities, by an import company such as Zhong-Tu aka CNPIEC)
--- for Michael above, it is precisely the whole issue concerning the PRC concerning subscriptions, especially for products in simplified characters, targeting PRC readers: either costly individual mail from overseas, but with any of the local publishing or import hassles, or bulk imports, or far worse local publishing; besides the future and trend concerning paper magazines worldwide is free/very cheap subscriptions anyway, see the USA, even for consumers not only for B2B products, that's why subscriptions are so cheap in the USA for consumer magazines (90% of the market, as opposed to newsstand sales); they even give gifts with subscriptions, sweepstakes, etc.; publishers lose money for acquiring subscriptions, but then can show their list to advertisers to get the rates, or rent this list for a profit---.